MINEX Forum

Tag: coal power

  • Kazakhstan Unveils 7.5 Trillion Tenge Energy Plan to Build 7.8 GW of New and Upgraded Power Capacity by 2030

    Kazakhstan Unveils 7.5 Trillion Tenge Energy Plan to Build 7.8 GW of New and Upgraded Power Capacity by 2030

    Kazakhstan has launched a national energy project targeting the construction and modernisation of 7.8 gigawatts of power generation capacity by 2030, as the government moves to address a chronic shortage of baseload electricity infrastructure that has constrained economic growth.

    The initiative, announced by the office of Prime Minister Olzhas Bektenov, will be financed entirely outside the state budget, requiring a minimum of 7.5 trillion tenge in private investment. It represents one of the most ambitious energy infrastructure programmes in the country’s post-independence history.

    At the heart of the plan are several large-scale new power stations. A coal-fired plant with a capacity of 2,640 MW will be built in Ekibastuz — Kazakhstan’s established coal power hub — while facilities of 700 MW and 500 MW are planned for Kurchatov and Zhezkazgan respectively. Advanced coal-fired combined heat and power plants will also be constructed in Kokshetau, Semey and Ust-Kamenogorsk.

    Alongside new builds, eleven existing power stations will be modernised during the same period, including the Aksu State Regional Power Plant, Ekibastuz GRES-2 and the Karaganda energy hub. The upgrades are expected to reduce the average wear rate of core power generation equipment across the sector by 12.6% within five years.

    Environmental standards feature prominently in the design of the new coal capacity. All new facilities will be built exclusively using clean coal technologies, incorporating high-efficiency electrostatic precipitators, catalytic nitrogen oxide reduction systems and wet flue gas desulphurisation equipment — measures the government says will bring emissions in line with international standards.

    The energy programme has been synchronised with upstream coal mining and rail logistics planning. Annual energy coal consumption in Kazakhstan is projected to grow by approximately 20 million tonnes by 2030 to fuel the expanded generation fleet. To meet that demand, the country’s fleet of gondola freight wagons will be expanded by 600 units per day, railway infrastructure will be modernised, and predictable tariff corridors for domestic coal supply will be introduced to provide pricing stability for power producers.

    The government also expects the national project to generate significant knock-on demand across the domestic manufacturing sector, including for locally produced boiler units, power transformers and industrial automation systems — embedding the energy build-out within a broader industrial development strategy.

  • Kazakhstan to Invest Over 8 Trillion Tenge in Expanding Coal Power Generation by 2030

    Kazakhstan to Invest Over 8 Trillion Tenge in Expanding Coal Power Generation by 2030

    Kazakhstan plans to invest more than 8 trillion tenge in expanding its coal-fired power generation capacity by 2030, the country’s Ministry of Energy of Kazakhstan said during a recent roundtable outlining the main areas of planned spending.

    Under a national project to develop coal-based power generation, Kazakhstan intends to construct five new thermal power plants in Kurchatov, Kokshetau, Semey, Ust-Kamenogorsk, and Zhezkazgan, as well as build Ekibastuz GRES-3. In parallel, the existing Ekibastuz GRES-2 and Aksu GRES power stations are set to undergo modernization.

    The national project focuses on introducing technologies that reduce atmospheric emissions from coal combustion. It предусматривает a gradual replacement of worn-out generation assets with modern, high-efficiency power units designed to minimize environmental impact. According to the ministry, the new coal-fired plants are expected to strengthen Kazakhstan’s energy security while meeting environmental standards.

    Investors for the construction of new power facilities will be selected through competitive tenders. For the modernization of existing plants, project operators will sign investment agreements directly with the Ministry of Energy. These mechanisms are intended to ensure transparency and provide investors with guaranteed returns, as electricity tariffs will be fixed under long-term contracts.

    To integrate the new generating capacity into the national energy system, the ministry also plans to increase coal production and further develop railway infrastructure. The proposals will be coordinated with other relevant government agencies before being incorporated into the final version of the national project.

  • Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan’s Ministry of Energy of Kazakhstan is preparing a National Project for the development of coal-fired power generation with a total potential capacity of around 7.6 GW, according to QazMonitor.

    Energy Minister Erlan Akkenzhenov said the initiative will prioritize modern “clean coal” technologies designed to meet environmental standards. As part of the programme, the ministry is overseeing the construction of three combined heat and power plants in Kokshetau, Semey and Ust-Kamenogorsk, with a combined capacity of 960 MW.

    The energy planning is being adjusted in the context of Kazakhstan declaring 2026 the Year of Digitalisation and Artificial Intelligence. Given the high electricity demand of data centres, the Energy Ministry and the Ministry of Digital Development, Innovations and Aerospace Industry will revisit timelines and volumes for new power capacity additions.

    Strengthening the gas sector
    To expand the country’s natural gas resource base, national gas company QazaqGaz is currently carrying out geological exploration across 14 licence areas, with preliminary resources estimated at about 515 billion cubic metres. In the medium term, the exploration portfolio is expected to grow to 30 sites, with total potential resources of roughly 1.7 trillion cubic metres.

    Around 50 subsurface blocks are planned to be offered via electronic auctions to attract investors and share geological risks. Exploration will be financed jointly by QazaqGaz, Samruk-Kazyna, and private investors.

    Digital map for hydropower development
    The ministry is also developing a unified digital map of Kazakhstan’s hydropower resources. The platform will integrate hydrological, topographical, infrastructure and legal data, helping to accelerate hydropower project design and shorten pre-investment preparation periods.

    Lower aviation fuel costs
    As part of efforts to develop aviation hubs, the price of jet fuel supplied directly to aircraft has been reduced from $1200 to $940 per tonne, with a further decrease to $890 planned. The ministry said the move has improved the competitiveness of Kazakhstan’s airports and supported the expansion of international routes, including services by Air Atlanta, Hungary Airlines and One Air.

  • EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    The European Commission has granted Poland a derogation allowing the country to keep its coal-fired power plants operating within the EU’s capacity market until the end of 2028, providing a temporary reprieve for Europe’s last remaining coal producer.

    The decision enables the Polish government to extend financial support to coal units that exceed the EU’s emission cap of 550 grams of CO₂ per kilowatt-hour (kWh), a limit set under the EU Regulation 2019/943. The approval applies from 1 July 2025 through 31 December 2028 and covers both hard coal and lignite power plants.

    The move offers a lifeline to Poland’s coal sector, which still underpins much of the country’s power generation. While the EU is accelerating efforts to phase out fossil fuels in line with the Paris Agreement, Poland remains heavily reliant on coal for electricity and heating — a stance that has increasingly set it apart from other member states.

    Under the derogation, supplementary capacity auctions will be permitted if Poland’s main auctions fail to secure adequate generation capacity to meet the national reliability standard. These short-term contracts, limited to a maximum of one year (or six months for 2025), will be available to coal-fired units that exceed the CO₂ threshold.

    However, the European Commission’s approval comes with strict conditions. Poland must:

    • Update its National Resource Adequacy Assessment (NRAA) with a 10-year projection plan, analyzing plant closures, new constructions, and temporary shutdowns.

    • Conduct detailed modeling to accurately estimate future electricity exports and imports based on sound economic assumptions.

    • Demonstrate that maintenance and refurbishment schedules reflect actual operational plans and national conditions.

    The Commission emphasized that the derogation should not undermine the EU’s long-term decarbonization objectives and is intended as a transitional measure to maintain grid reliability during Poland’s energy transition.

    Poland’s dependence on coal remains significant, accounting for the vast majority of its power generation. Industry experts estimate the Polish state spends about €235,000 per hour subsidizing coal operations.

    Elsewhere in Europe, countries including Germany, the Czech Republic, and Slovenia have accelerated coal phase-outs, selling or shutting down key plants to meet EU divestment and climate targets.

    While global efforts continue to shift toward renewable energy, the Energy Information Agency recently reported that coal consumption could rise in several nations over the next decade due to slow renewable deployment and energy security concerns.

    For now, Poland stands as the EU’s last coal stronghold, facing growing pressure to align its energy system with Europe’s green transition.

  • Western Balkans Face Economic Strain as EU Green Tariffs Loom

    Western Balkans Face Economic Strain as EU Green Tariffs Loom

    The Western Balkans’ heavy reliance on coal-fired power could lead to a significant economic setback when the European Union’s new carbon border adjustment mechanism (CBAM) comes into effect next year. The eco-tariff will place a levy on carbon-intensive imports, making electricity exports from the region more costly.

    Coal accounts for between 60% and 95% of power generation across the region, with 60% of electricity exports heading to the EU. With close economic ties to the bloc, countries like Bosnia and Herzegovina could face annual revenue losses exceeding €220 million ($231.99 million), according to CEE Bankwatch.

    While some analysts see CBAM as an incentive for the Western Balkans to accelerate their green transition, a lack of renewable energy investment and continued government subsidies for aging coal plants have stalled progress. Many governments are now seeking delays or exemptions, but these would require substantial clean energy investments or carbon pricing reforms that are unlikely to be implemented in time.

    Switching to renewables presents significant social and economic challenges. Agora Energiewende estimates the cost of the energy transition at around €40 billion, excluding support for approximately 30,000 coal workers. Unlike EU nations, which have access to a €17.5 billion Just Transition Fund, the Western Balkans lack dedicated financial support to cushion the economic impact.

    The EU has allocated up to €9 billion for the region’s green and digital transition, along with €20 billion through the Western Balkan Guarantee Facility. However, experts argue that this funding is insufficient to drive a just transition. Ultimately, Western Balkan nations must take the lead in implementing energy reforms, as external support alone will not be enough.

  • Kazakhstan’s Modern Coal Power Plants May Require Trillions in Investments

    Kazakhstan’s Modern Coal Power Plants May Require Trillions in Investments

    Kazakhstan’s plans to construct modern coal-fired power plants could demand billions of dollars or trillions of tenge, according to Zhakyb Khairushev, Managing Director of the Atameken National Chamber of Entrepreneurs.

    Speaking with LS, Khairushev assessed President Kassym-Jomart Tokayev’s directive to build innovative coal power plants in the country. He emphasized that these efforts aim to bolster energy security, ensure sustainable development, and integrate advanced technologies.

    While these modern stations could enhance fuel efficiency and reduce emissions, they remain among the most carbon-intensive forms of electricity generation. According to Khairushev’s Telegram channel, Haırýshev energy, this complicates Kazakhstan’s ability to meet climate goals.

    Additionally, these projects could lead to higher electricity costs, factoring in environmental payments and renovation expenses. Given the global shift toward decarbonization, Khairushev stressed the importance of evaluating both the economic feasibility and environmental impact of such projects.

    The implementation of “green coal” technologies, including supercritical and ultra-supercritical (USC) steam systems with carbon capture, utilization, and storage (CCUS), could mitigate emissions. However, their construction is highly expensive. Initial investments in such advanced units could be 40-60% higher than traditional coal plants, with costs potentially reaching hundreds of millions or even billions of dollars for 500-1000 MW energy blocks.

    Operating costs would also rise due to emission control systems, as well as CO2 transport and storage under CCUS, making electricity 30-50% more expensive compared to standard coal plants. Khairushev noted that state support and preferential financing mechanisms would be crucial for economic viability.

    Replacing aging coal plants is a long-term process, taking 4-7 years per station and up to 20 years for full-scale replacement. However, Kazakhstan is already working on implementing USC technology at Ekibastuz GRES-2 and planning for GRES-3.

    To accelerate modernization, Kazakhstan must develop a national energy infrastructure plan, attract investors, and localize equipment production. If executed efficiently, the first modernized coal plants could be operational within 5-7 years, with full coal sector modernization projected by 2040.

    Khairushev highlighted the multiplier effect of clean coal projects, stimulating domestic engineering, attracting foreign technology partners, and creating regional jobs. The initiative could also reduce technological lag, foster local expertise, and strengthen Kazakhstan’s eco-technology market presence.

    International development institutions and private investors could be drawn to such high-potential projects, increasing access to long-term financing. Additionally, reducing power outages would stabilize industrial production, lowering maintenance costs and improving Kazakhstan’s global competitiveness.